IMF approves $7.6m debt relief to Burundi to cushion Covid-19 effects

The IMF has revised downwards economic growth projections for 2020 by 5.3 percentage points to -3.2 percent this year.

NAIROBI - The International Monetary Fund said on Monday it had approved $7.6 million debt relief to Burundi to help address the economic impact of the Covid-19 pandemic.

It said the relief for three months would be potentially raised to $24.97m over the next 21 months, if resources are available.

“IMF debt relief will help free up resources for public sector health needs including other emergency spending and help mitigate the balance of payments shock posed by the Covid-19 pandemic,” the IMF said in a statement.

The IMF said it has revised downwards economic growth projections for 2020 by

5.3 percentage points to

-3.2 percent this year. “The pandemic has exacerbated preexisting economic challenges and creates significant external financing needs in 2020 and 2021, mainly as a result of lower exports, elevated imports needs, and reduced remittances inflows,” it said. Burundi has so far had 328 cases of Covid-19 and one death.

Meanwhile, the IMF’s executive board will meet next Monday to consider South Africa’s request for a Covid-19 response loan, according to the board’s calendar.

The meeting comes after months of engagements between National Treasury and IMF management. SA is seeking a loan of $4.2 billion from the multilateral institution, though certain factions of the ANC have been against this. –